New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-09-24
Tile tINANCLiL rEONPECE

i
! The attempt To- make it appear that scarcity
Of money has been nSldiouSly promoted by
pcoDIc Interested in the policy of prJto ton.
for the purpose of cAhauStEg the Government
surplus revenue. and 50 preventing reduction
OF duty next winter, is Shalio" and thn enough
to be worthy OF Democratic politicians. Were
| the Treasury To pay out this very week every
dollar Of the surplus revenue that has thus lar
accumulated, the excess of revenue over
authorized expenditure for the future would
remain exactly the same. and the reasons Tor
reducing taXat ion would be exactly H. strong
rs they are now 1t would, therefore, be
absurd To- favor present expenditure OF the
accumulated surplus for the purpose oil IN
llucnoing Congress against reduction OF taxes
hereafter But. rs a matter Of fact 1t Is well
known that many Of those who have most
earnestly appealed TO the Treasury for large
purchases Of bonds at this time are Jealous
prOtcctiOnistS. and perhaps III 40 quarter was
the free employment Of Che Treasury surplus
more generally and warmly urged than among
the iron and steel manufacturers and dealer,
of Pennsylvania.
1t is for the public interest that the effects
Of the new policy which the Treasury has
adopted should not be ovcrcstlmatcd. Natu-
| rally the active spectators who favor an adj
vance are inclined to make Che most Of their
! opportunitv and it suits them TO represent
| that the entire sum paid for bonds will come
| into Wall Street and that it will greatly in
| crease the supply Of money. UnfOundcd an
| ticpations are apt in this way to be created.
and the disappointment inevitably resulting
NAV do harm TO legitimate business. The
truth is that the bonds which have been and
Will be sold to the Treasury must come to a
large extent from points in the interior, and
not from institutions in this city The New.
! York institutions have for some months found
profitable employment Of money, and have
been able TO sell all the Governments they
were willing to sell at prices better than the
Government now offers. With money COM
handing high rates, and likely to command
| still higher in the near future, these inStltu-
tions were more strongly tempted to part
with any bonds they had 10 spare than they are
at this time, when it is generally believed
that the policy u the Government will cause
lower rates for money.
Hitherto large proportion OF the bonds
offered to the Government have come from
capitalists and institutions outside of this city
1t may be noticed that the Offers have been
largest from those quarters where there was
financial pressure through failure Of important
spcculations, or through employment Of avail
able funds in railroad or other operations.
Thus Mr.. Fair had Government bonds 10 Oncr,
and it is not strange that the money was
wanted in San FrlnciScO; several institutions
at Boston offered bonds, and the funds OF that
city have been largely employed IN Western
railroad building. future offers are likely To
come in great part from The interior and from
quarters where there exists an especial dc
mand for money. 1t must, therefore, be an
tcipatcd that considerable part Of the
money paid for bonds viii go directly to sellers
In different parts Of the country, and will there
be employed without affecting the money mar
kct i'm Newly ri at all. Ii is also necessary
20 remember that the excess OF revenue over
expenditures has Of late appeared to be not
far from S12,OOO,00O per MONTH or about
S3,OOO,OOO each week. If the Government
eNpends in two weeks only the amount OF
money that would otherwise be drawn from
the channels Of business in five weeks, the
question remains whether it will continue to
purchase bonds after the five weeks have
elapsed and after the requirements of the
sinking fund for the year have been entirely
met. Thus far the policy OF the Treasury in
that respect has not been announced, and
there is nothing to indicate that more public
money will be disburscd than the excess Of
revenue over expenditures during the first
quarter of the fiscal year. There may be
reason to infer that the President will direct